Features & benefits
- This mortgage has a fixed interest rate for 30 years. The principal and interest portion of your monthly payment will not change while taxes and insurance will adjust. The monthly payment amount is sufficient to pay back principal and interest in 30 years.
- You have security in the fixed principal and interest amount of your monthly payment.
This mortgage will probably have the highest interest rate of the common loan types. It may not be wise to pay the higher rate if you plan to own the house for only a few years.
Some borrowers can save money and pay off their mortgages sooner by making bi-weekly payments.